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Retirement income framework development: KPMG's submission to Treasury
Retirement income framework: KPMG's submission
On 15 June 2018, KPMG lodged a submission to the Federal Treasury in response to the Retirement Income Covenant Position Paper – Stage One of the Retirement Income Framework (May 2018). In our submission, KPMG expressed support for the establishment of a Retirement Incomes Framework which aligns to the objective of superannuation, while recommending further consideration of product design and advice models.
On 19 February 2018 the Minister for Revenue and Financial Services announced the establishment of a consumer and industry advisory group to assist in the development of a framework for Comprehensive Income Products for Retirement (CIPRs).
In the 2018-19 Federal Budget More Choices for a Longer Life Package the Federal Government committed to introducing a retirement income covenant as the first stage of the Government’s proposed retirement income framework.
On 17 May 2018 the Federal Treasury released a Retirement Income Covenant Position Paper which detailed a series of Covenant Principles and Supporting Principles for consultation.
KPMG's submission
KPMG’s observations and recommendations submission is supportive of measures proposed in the Position Paper that result in:
- more education to members to enable them to make informed decisions
- flexibility in the advice model
- flexibility of product design.
Our submission discusses observations and concerns regarding matters including:
- consumer protection versus trustee safe haven
- two tier advice model
- cross-subsidisation of advice (retirement advice via intra fund).
